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Tag Archives: Zero Commission

Travel agents to send a hundred thousand e-mails to Singapore Prime Minister to protest zero commission

The three month old stand-off between travel agents and Singapore Airlines on the zero commission issue shows no signs of abating. Both sides have tried to negotiate but remain apart. If anything, the dispute has entrenched both sides in to their respective stands even further. In the latest move to pressure the Singapore national carrier, Indian travel agents will send …

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Travel agents to boycott Singapore Airlines

I must tip my hat to the travel agents’ associations in India. Their strategy of targeting one airline at a time, has paid handsome dividends. From a paltry five per cent commission on the basic fare, they have successfully made all the airlines pay three per cent on the gross fare, which includes the fuel surcharges, on domestic fares. Passengers …

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Kingfisher restores travel agent commissions

As I had indicated in my earlier story, Kingfisher Airlines announced that it will pay three per cent agency commission to travel agents on gross fare, effective from today. The decision to pay three per cent commission was acknowledged in a fax sent to TAAI office last night. “The airline has also withdrawn Transaction Fee on tickets, which was introduced …

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Jet Airways to pay travel agents commission

The travel agents appear to have won Round 1 of the “Zero Commission” battle. Less than four days after the agents decided to boycott Jet Airways and low cost subsidiary JetLite, Jet Airways announced restoration of the travel agents’ commissions. As per the release from Jet Airways, Recognizing the difficult economic environment for the travel industry as a whole, Jet …

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Business Standard: Calling the airlines bluff

Read a nice article by Anjuli Bhargava in the Business Standard today, about the airlines’ ticket prices, the fuel prices, and the politicians. I strongly recommend your reading it. Ms. Bhargava asks Can someone enlighten me as to what’s going on? I am referring to this quid pro quo that’s been playing out through the media between the airline industry, …

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The age of zero commission and zero guarantees

The “Zero Commision” ruckus has been ratcheted up another step, by the travel agents. As per various news reports, In a move aimed at forcing airlines to revoke their decision to withdraw the five per cent commission, previously built-in to the ticket prices, and paid to the travel agents, over 2,500 travel companies, including IATA travel agents and online travel …

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Air India, Jet, Kingfisher, withdraw transaction fee

India’s top three airlines have withdrawn a transaction fee on air tickets effective today for tickets sold through their call centres, websites or offices. Air India, Jet Airways and Kingfisher Airlines have withdrawn the fee, which ranges from 350 rupees on a domestic economy ticket to 1,200 to 10,000 rupees on first class international tickets. Earlier this month, airlines had …

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Fuel prices reduce, air fares do not

Thanks to the global reduction in crude oil prices, and reductions in Customs duty (in response to desperate pleas by airlines), Aviation Turbine Fuel (ATF) prices in India, have retreated back to earlier levels of 8 months ago. Today, ATF is priced almost the same as in March 2008, but air fares show no sign of retreating. Airlines had almost …

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Airlines get relief from Government but make passengers pay Transaction Fee

The battered India airline companies received a lifeline from the government on October 31. The 5% Customs duty on Aviation Turbine Fuel (ATF) has removed. In addition the government controlled oil marketing companies have announced a price reduction of Rs. 6,000 per kilolitre on ATF. These two steps, will result in an about 17% reduction in prices, but predictably, airlines …

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Travel agent commission, Calcutta High Court issues status quo order

Krupa Vora of TravelBizMonitor reports, of a significant development, which has national implications. Travel agents will continue to receive commissions on the sale of airline tickets till the Calcutta High Court passes judgement in the suit filed by a TAFI member agent in Kolkata. The TAFI member agent (plaintiff) filed a suit in Calcutta High Court early last week against …

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Pay travel agent transaction fee even on refunds

TravelBizMonitor has provided a break-up on the Travel Agent Transaction Fee. As per the decision, travel agents will now charge a Transaction Fee of Rs 350 per ticket on domestic Economy Class, Rs 500 per ticket on domestic Business Class, Rs 2,500 per Economy Class booklet and Rs 3,500 per Business Class booklet. Interestingly, tickets purchased for SAARC, which include …

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Air passengers to pay yet another fee

The air transport cartel is at it, again. In all too familiar theme, we passengers must get ready to pay one more “fee“. Readers will recall that airlines decided to scrap travel agent commissions, in India, effective October 31, 2008. This move by the airlines, created an uproar in the industry and led to strikes and protests. Presently, airlines pay …

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Indian Travel Agents need to EARN their income

From October 1, 2008, airlines in India are going to stop paying commissions on their tickets sales by travel agents. Travel agents are understandably incensed. Until about a year ago they used to earn 9% commission, which was dropped to 5%, and in another 2 months, will drop to 0. Industry experts say most small agents will shut shop, while …

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